ELSA share buyback plan strengthens shareholder value - BCA Sekuritas

PT Elnusa Tbk (Elnusa, IDX: ELSA) has announced a share buyback plan with a maximum value of Rp100 billion as part of the company’s strategy to increase shareholder value while reflecting management’s confidence in the company’s business fundamentals and future business prospects. The share buyback is also expected to help maintain the stability of the company’s share price amid fluctuating market conditions and strengthen investor confidence in the company’s fundamental value. The buyback plan will be carried out during the period from 3 August to 2 November 2026 using funds sourced from the optimisation of the company’s internal cash. The implementation of this corporate action is carried out while considering the liquidity condition, capital structure, and interests of all company stakeholders. PT Elnusa Tbk Finance Director, Nelwin Aldriansyah, stated that the buyback is a strategic step demonstrating management’s optimism regarding the company’s long-term performance and growth potential. “This share buyback plan is part of the company’s efforts to continue creating added value for shareholders. This step also reflects management’s confidence in Elnusa’s solid business fundamentals and positive, sustainable future business prospects. In addition, the buyback is expected to provide confidence to investors regarding the company’s fundamental value while helping to maintain share price stability amid market dynamics,” said Nelwin. Nelwin added that the company has a healthy financial condition, so the buyback will not disrupt business activities or established business development plans. “The company ensures that the buyback will not affect the company’s financial ability to carry out operational activities, meet financial obligations, or support investment and business development programmes. Elnusa has sufficient capital and cash flow to finance all business activities, business development activities, operational activities, and the buyback, so that all operational activities and business growth will continue as normal,” he added. The buyback will be carried out in accordance with applicable Indonesian capital market regulations, including OJK Regulation Number 13 of 2023 and Number 29 of 2023, as well as Indonesia Stock Exchange regulations regarding share buybacks in significantly fluctuating market conditions. The company has also appointed PT Bahana Sekuritas as the securities brokerage intermediary for the buyback. Based on management’s review and evaluation, the share buyback is not expected to cause a decline in the company’s revenue and will not have a material negative impact on the company’s business activities or growth. The company currently has a healthy financial position with adequate capital and cash flow to support all business activities as well as the buyback. As a public company that upholds the principles of Good Corporate Governance (GCG), Elnusa is committed to carrying out the entire buyback process transparently, accountably, and in accordance with regulatory provisions. The company will continue to convey necessary information to shareholders and the public through the applicable information disclosure mechanism. In addition to providing added value for shareholders, the share buyback also provides flexibility for the company in long-term capital management. The repurchased shares can become treasury shares that can be transferred at any time in accordance with applicable provisions to support the company’s future strategic needs. Through this step, Elnusa hopes to strengthen investor confidence in the company’s intrinsic value, maintain the balance of the company’s fundamentals, and support the creation of sustainable value for all shareholders. The buyback is also expected to maintain share price stability amid market dynamics while providing flexibility for the company in managing its long-term capital structure to support sustainable business growth.